Trump pivots from 20 percent Strait of Hormuz fee amid Iran war escalation

Trump backs away from fee, says regional countries will instead invest in US in return for transit protection.United States President Donald Trump has backed away from his claim that Washington would levy a 20 percent transit fee for vessels passing through the Strait of Hormuz.The reversal on Tuesday came just a day after Trump announced the 20 percent fee as fighting between the US and Iran continued to escalate.Recommended Stories list of 3 itemslist 1 of 3Trump threatens to attack ‘Pickaxe Mountain’ a nuclear facility inside Iranlist 2 of 3US military releases video of its latest strikes on Iranlist 3 of 3US bombs Iran again, Tehran strikes Gulf, tankers: What’s the latest?end of listAt the time, Trump did not release any further details of the fee, only saying on Truth Social that it would be a “reimbursement” for “any and all costs necessary to do the job of providing safety and security to this very volatile section of the World”. The administration did not say how it would ensure safe passage through the international waterway, which the US does not control.In the latest statement, Trump said that instead, the fee would be replaced with “Trade and Investment Deals that the various Gulf States will be making with the United States”.He said the decision came after “highly productive conversations with Middle East leadership”.Trump further vowed the investments from Gulf countries would be “massive”, without providing further information. Several countries in the region had already announced multibillion-dollar pledges to invest in the US prior to the US and Israel launching their war with Iran on February 28.While Trump had previously suggested the US could take “control” of the Strait of Hormuz and charge tolls, Monday’s announcement had been the closest sign yet that the rhetoric could be turned into policy.The Trump administration had previously rejected the notion of Iran charging any fees for transiting ships, with US Secretary of State Marco Rubio saying that doing so in an international waterway would undermine international law.